Market Commentary Closing for 28th August 2025 by Bajaj Broking
Indian equity benchmarks continued its losing streak on August 28th, with Nifty settling near the 24,500 marks, reflecting continuation of the selling pressure. Last two sessions sharp decline can be attributed to the implementation of the 50% US tariff on Indian goods, which has heightened worries about India's export competitiveness and trade relations. While domestic institutional investors (DIIs) provided some support by stepping in as net buyers, the persistent FII outflows and amplified the impact of the US tariffs, leading to a broad-based selloff. At close, the Sensex was down 705.97 points or 0.87% at 80,080.57, and the Nifty was down 211.15 points or 0.85% at 24,500.90. Barring Consumer Durables, sectoral breadth remained weak as all other indices slipped into the red, with FMCG, Power, Banking, Realty, IT and Telecom registering cuts in the range of 1–2%, indicating broad-based sectoral pressure. The midcap index shed 1.2 percent, and the small-cap index fell 1.4 percent.
Nifty Outlook
The index formed a second consecutive sizable bear candle with a lower high and lower low signaling continuation of the corrective decline. Index in the process filled the last Monday’s gap area and closed below the 100 days EMA. Going ahead to pause the current down trend the index needs to start forming higher high and higher low in the daily chart, failure to do so will keep the bias down. Nifty has immediate support base placed at 24,400-24,350 levels being the confluence of the recent lows and the key retracement area. Index holding above the same will lead to a consolidation in the range of 24,400-24,900. While failure to do so will signal acceleration of decline towards 24,000-23,800 levels being the confluence of the 52 weeks EMA and the previous major lows and the previous major breakout area.
Bank Nifty Outlook
Bank Nifty formed a sizable bear candle with a lower high and lower low signaling continuation of the corrective decline. Index has recently generated a breakdown below the last 3 weeks range (54,900-56,100) highlighting extension of the decline.
Going ahead, failure to move above 55,000 will keep the bias down and will open downside towards 53,500-53,000 levels in the coming sessions. Key support is placed at 53,500-53000 levels being the confluence of the 200 days EMA and the low of May 2025.
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